The Liberal Democrats have claimed that a £250 million government scheme to help key workers buy homes only helped one in four of the people targeted since its launch in 2000.

The Starter Home Initiative promised to help thousands of nurses, teachers and other public sector workers who would otherwise be unable to buy homes in the communities they served.

Edward Davey MP, Liberal Democrat housing spokesman, told ePolitix.com: "This halfhearted scheme clearly hasn't even got half way to sorting out the housing problems of the key workers it was aiming to help.

"Our nurses and teachers simply need more affordable homes. And until more reasonably priced houses are made available or built, spin like the starter home scheme will always fail."

Forum Response: Association of Teachers and Lecturers

Gwen Evans, joint acting general secretary of ATL, told ePolitix.com: "One in four is better than none in four but in the years since the initiative has been in place the cost of homes has risen widely.

"Many of those who may have benefited from the initiative have had to pay off their student debt, and have problems obtaining a mortgage, therefore they dare not take on more debt.

"Not so long ago, house prices in areas seen as hot-spots dropped like a stone, therefore potential buyers are scared of negative equity. With all this, it is hard to blame teachers for choosing to live in areas where buying their own home is a possibility."

Forum Response: Professional Association of Teachers

Jean Gemmell, general secretary of PAT, told ePolitix.com: "This is disappointing news. Many teachers and other public sector employees cannot afford to live in some areas of the country because of soaring house prices, causing a real problem for schools and nurseries in those areas trying to recruit and retain staff. At the end of the day, children suffer from staff shortages.

"It is imperative that the government continues to explore how to help public sector employees to find affordable housing.

"We would like to see more creative ways of assisting teachers and other public service employees, for example by the provision of shared-equity mortgages. Such innovations are expedient to attract the quality education and childcare staff this country needs.

"One member told us that, after 25 years of teaching, the maximum mortgage she can obtain is £100,000, whilst the minimum cost of a one bedroom flat in her area is £150,000. She naturally feels highly aggrieved, and her situation is not unique."